• Home Loan BYTES FROM OUR KITCHEN

    Best Home Renovation Loan

    It is not enough to own a house – you need to beautify it, convert it from a house to home, and make it your own. If your budget does not allow interior decorations and furnishing of the house, don’t worry, because you can get either a top-up home loan or a home renovation loan. A home renovation loan can be taken over and above your existing home loan, provided you have the credit rating and banking relationship conducive to that. Home renovation loans come with a lower tenure – of up to 5 years.

    Before you decide which home renovation loan to take, take a look at this article where we talk to you about the best home renovation loans in Singapore.

    Best Loans for Home Renovation in Singapore

    Here are some of the top home renovation loans currently available in the country:

    POSB Renovation Loan

    POSB offers a renovation loan for an interest of 2.31% p.a. if your home loan is already with the bank.

    Advantages of the POSB Renovation Loan

    • Low interest rate: Your annual interest rate would be just 2.31% (flat rate, not effective rate) if you have taken a long-term home loan from POSB itself.
    • High loan amount: The maximum loan available is S$30,000, which can be repaid in 1 to 5 years. This means your monthly repayment amounts will be just around S$560.
    • Insurance cover: You can also take a comprehensive life and total permanent disability insurance policy at a low premium price, to cover your loan.

    Disadvantages of the POSB Renovation Loan

    If you do not have a home loan with the bank, the interest rate would go up.

    • Partial prepayment is not allowed.
    • 1% of the outstanding loan will be charged as pre-payment if you want to close the loan before the tenure ends.

    OCBC Renovation Loan

    OCBC Renovation Loan disburses its loans super-quick – as fast as one working day – after the loan is approved.

    Advantages of the OCBC Renovation Loan

    • Low interest rate: The OCBC Renovation Loan comes at an interest rate of 2.63% p.a. for those who have the OCBC Home Loan, and at 2.83% p.a. for non-OCBC customers.
    • Quick disbursal: OCBC Renovation Loans are disbursed within 1 day of loan approval.
    • Loan repayment: You can get up to 6 times your monthly income or S$30,000 as loan, which can be repaid in 1 to 5 years.
    • Other benefits: You get 3 free cashier orders.
    • Joint loan option: You can also take the loan jointly with another person. Only one of you needs to have the minimum income of S$24,000.

    Disadvantages of the OCBC Renovation Loan

    OCBC Renovation Loan will be costlier for those who do not have an existing home loan from the bank.

    • 2% of the amount is charged in case of both partial and full prepayment.

    Maybank Home Renovation Loan

    Flexible repayment and easy approval process distinguishes Maybank Home Renovation Loan from other similar products.

    Advantages of the Maybank Home Renovation Loan

    Promotional rate: Online approvals get a discount of 25% n processing fee until 31 October, 2017.

    • Low interest rate: Maybank customers can get this loan at 2.88% p.a.
    • High loan amount: You can borrow up to 6 times your monthly income, to a maximum of S$30,000.

    Disadvantages of the Maybank Home Renovation Loan

    • The interest rates are 2.98% (flat) for loans above S$15,000 and 3.68% for loans below S$15,000, which is high compared to other banks.

    CIMB Renovation Loan

    CIMB Renovation Loan covers a wide variety of repairs and renovation to your home under its loan package.

    Advantages of the CIMB Renovation Loan

    Here’s why you should consider the CIMB Renovation Loan:

    • High loan amount: The bank will give a maximum loan of 6 times your monthly income, up to S$30,000.
    • Flexible repayment: You can pay the loan back in 1 to 5 years.
    • Other benefits: You get 3 free cashier’s orders.

    Disadvantages of the CIMB Renovation Loan

    Here are some drawbacks of this loan:

    • The interest rate for the loan is 2.98% (flat), which is higher than what is offered by many other banks.
    • There is no discounted rate for existing CIMB Home Loan customers.

    RHB Renovation Loan

    RHB home renovation loan is a great option for Singaporeans.

    Advantages of the RHB Renovation Loan

    • Multiple packages: There are three kinds of packages available for RHB customers: Flat Rate Package, Monthly Rest Package and Furnishing Loan Monthly Rest Package.
    • High loan amount: You can borrow up to 6 times your monthly income, to a maximum of S$30,000.

    Disadvantages of the RHB Renovation Loan

    If you want to reconsider the decision to take this loan, these may be some of your reasons:

    • The interest rate for the loan is 2.98% (flat), which is higher than what is offered by many other banks.
    • The interest rate is higher if your loan amount is less than S$15,000.

    Compare & Review the Best Renovation Loans in Singapore

    Here is a table highlighting the key factors of each of the loans described above:

    Product Loan amount Interest rate Loan tenure
    POSB Renovation Loan Maximum S$30,000 2.31% p.a. 1 to 5 years
    OCBC Renovation Loan Maximum S$30,000 2.63% p.a. to 2.86% p.a. 1 to 5 years
    Maybank Home Renovation Loan Maximum S$30,000 2.98% p.a. for loans above S$15,000 and 3.68% p.a. for loans below that amount 1 to 5 years
    CIMB Renovation Loan Maximum S$30,000 2.98% p.a. 1 to 5 years
    RHB Renovation Loan Maximum S$30,000 2.98% p.a. 1 to 5 years

    Note: Effective interest rate will be higher and depends on the tenure and flat rate.

    Check for Home Renovation Loan Calculator

    How to Choose the Best Renovation Loan for you?

    Before you select a home renovation loan, you need to consider the following factors:

    • Your loan amount should not exceed your actual renovation needs.
    • Do your research and find the best deal for yourself. It should include not only a low interest rate but also the loan amount you require and other facilities you would require from a renovation loan.
    • If you have a home loan with a bank, it may be better to choose a renovation loan from the same bank where you have your existing home loan. In case you don’t have a home loan, you could go for a bank with which you have an existing relationship.   
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